Last month’s Atlanta residential real estate index remained stagnant as a result of falling home sales coupled with rising home prices. This month, we’re excited to share that the Cal-Culator has risen .02 to a 7.7 triggered by positive news regarding delinquent home rates, home prices, construction spending and mortgage rates.
Home Prices and Sales
CoreLogic’s most recent U.S. Home Price Insights Report revealed extremely positive news on home prices:
- Home prices rose by 1.1 percent since last month
- Home prices increased 6.2 percent from August 2015 to August 2016
- Home prices are expected to rise by 0.4 percent next month
- Home prices are projected to rise 5.3 percent from August 2016 to August 2017. Prices are expected to peak in October 2017
Georgia saw a 0.1 month-over-month percent change in home prices and 5.5 percent change year over year.
The report also found that the U.S. has now experienced 55 consecutive months of year-over-year increases, though the national increase is no longer in the double digits.
The number of 60-plus-day delinquent loans declined by 6 percent in the second quarter, bringing the number of delinquent loans to their lowest level since 2008, according to the Federal Housing Finance Agency’s Foreclosure Prevention Report.Georgia experienced a 14-percent drop in serious delinquent loans and a 9-percent drop in total delinquent loans.
Construction spending held steady in August and is up by nearly 5 percent for the first eight months of the year compared to the same time period in 2015, according to an analysis by the Associated General Contractors of America.Though private residential construction spending decreased 0.4 during the month, it is up 4.2 percent year-to-date.
“While demand for construction remains robust, it is no longer growing like it was earlier this year,” said Ken Simonson, the association’s chief economist. “There is little doubt that new public-sector investments in our aging infrastructure could help reinvigorate demand for construction.”
As everyone knows, mortgage rates are still at a historical low – making it a great time for wishful homebuyers to begin shopping. Freddie Mac’s latest Primary Mortgage Market Survey, published in National Mortgage Professional Magazine, found the 30-year fixed-rate mortgage averaged 3.42 percent for the the week ending on September 29, marking a 10-week low.
“Despite rising house prices, the majority of housing markets have sustained their momentum due in large part to low mortgage rates,” said Freddie Mac Deputy Chief Economist Len Kiefer. “For example, purchase applications … were up more than 17 percent year over year in July and remaining at their highest level since December 2007.”
The next Cal-Culator will be released on Election Day, November 8.